REG - Pennon Group PLC - Final Results <Origin Href="QuoteRef">PNN.L</Origin> - Part 9
15/07/2015 18:30
- Part 9: For the preceding part double click ID:nRST7139Nh
Profit/(loss) before tax
Water and sewerage 179.7 162.5
Waste management 1.0 (21.0)
Other 16.3 17.2
197.0 158.7
* Intra-segment trading between and to other segments by
the water and sewerage and waste management segments is
under normal commercial terms and conditions that would
also be available to unrelated third parties. Intra
-segment revenue of the other segment is at cost.
Geographic analysis of revenue based on location of customers
2015
(Unaudited) 2014
£m £m
UK 1,317.6 1,265.2
Rest of European Union 10.4 13.1
China 25.3 35.8
Rest of World 3.9 7.1
1,357.2 1,321.2
The UK is the Group's country of domicile and generates the majority of its revenue from external customers in the UK. The Group's non-current assets are located in the UK.
5. Exceptional items
Exceptional items are those that in the Directors' view are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the Group's financial performance.
2015
(Unaudited) 2014
£m £m
Operating credits / (costs)
Pension costs - past service (a) 14.9 -
Environmental provisions (b) 6.7 (5.7)
Underperforming contracts (c) (11.0) -
Impairment of property, plant and equipment (d) (24.3) (42.9)
Total net operating costs (13.7) (48.6)
Tax credit arising on exceptional items 2.7 8.9
Net exceptional charge (11.0) (39.7)
(a) During the year an exceptional credit was recognised
relating to changes made to the Group's defined benefit
scheme. Changes implemented during the year capped
pensionable pay for active members, reducing past
service cost.
(b) Landfill environmental provisioning has been reassessed
£6.7m lower reflecting lower expected restoration and
aftercare costs, partly offset by a reduction in
discount rate.
(c) A small number of contracts have been assessed as
underperforming. On this basis a provision of £11.0m has
been established.
(d) The profitability of a small number of landfill energy
sites has been impacted by higher than anticipated site
costs and lower than expected volumes due to site
specific circumstances. As a result a net exceptional
impairment charge of £24.3m has been recognised to write
-down the carrying value of landfill energy property,
plant and equipment. Included in the net charge are
impairment reversals of £9.2m.
6. Net finance costs
2015(Unaudited) 2014
Finance Finance Finance Finance
cost income Total cost income Total
£m £m £m £m £m £m
Cost of servicing debt
Bank borrowings and overdrafts (32.2) - (32.2) (32.5) - (32.5)
Interest element of finance lease rentals (32.9) - (32.9) (35.8) - (35.8)
Other finance costs (6.5) - (6.5) (4.9) - (4.9)
Interest receivable - 11.3 11.3 - 5.3 5.3
Interest receivable on
shareholder loans to joint
ventures - 11.4 11.4 - 9.8 9.8
(71.6) 22.7 (48.9) (73.2) 15.1 (58.1)
Other finance income
Investment income received - - - - 11.3 11.3
Fair value losses on derivative
financial instruments
providing commercial
hedges - - - (10.7) - (10.7)
- - - (10.7) 11.3 0.6
Notional interest
Interest receivable on service
concession arrangements - 13.5 13.5 - 8.5 8.5
Retirement benefit obligations (2.7) - (2.7) (4.0) - (4.0)
Unwinding of discounts on
provisions (10.5) - (10.5) (9.3) - (9.3)
(13.2) 13.5 0.3 (13.3) 8.5 (4.8)
Net gains on non-designated
financial instruments
hedging interest rate risk - 7.8 7.8 - 8.4 8.4
Net finance costs (84.8) 44.0 (40.8) (97.2) 43.3 (53.9)
In addition to the above, finance costs of £22.5m (2014 £21.8m) have been capitalised on qualifying assets included in property, plant and equipment.
Other finance income received last year represents enhanced yields from investment income received on deposits held partially offset by fair value losses on derivative financial instruments which provided commercial hedges against these short-term structured deposits. These transactions commenced and matured during the year.
7. Taxation
Unaudited
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 5) Total items (note 5) Total
2015 2015 2015 2014 2014 2014
£m £m £m £m £m £m
Analysis of charge/(credit) :
Current tax charge 39.2 0.6 39.8 35.3 - 35.3
Deferred tax - other 18.2 (3.3) 14.9 14.3 (10.2) 4.1
Deferred tax - arising on
change of rate of
corporation tax - - - (40.1) 1.3 (38.8)
Total deferred tax charge/ (credit) 18.2 (3.3) 14.9 (25.8) (8.9) (34.7)
Tax charge/(credit) 57.4 (2.7) 54.7 9.5 (8.9) 0.6
UK corporation tax is calculated at 21% (2014 23%) of the estimated assessable profit for the year.
UK corporation tax is stated after release of prior year current tax credits of £5.5m (2014 £16.5m) and a prior year deferred tax charge of £9.7m (2014 £12.1m).
The 2014 deferred tax credit includes a credit of £40.1m reflecting a reduction in the rate of UK corporation tax.
Tax on amounts included in the consolidated statement of comprehensive income, or directly in equity, is included in those statements respectively.
8. Earnings per share
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held in the employee share trust which are treated as cancelled. For diluted earnings per share the weighted average number of ordinary shares is adjusted to include all dilutive
potential ordinary shares.
The weighted average number of shares and earnings used in the calculations were:
2015
(Unaudited) 2014
Number of shares (millions)
For basic earnings per share 390.9 367.4
- More to follow, for following part double click ID:nRST7139NjRecent news on Pennon
See all newsREG - Pennon Group PLC - Director/PDMR Shareholding
AnnouncementREG - Pennon Group PLC - Director/PDMR Shareholding
AnnouncementREG - Pennon Group PLC - Total Voting Rights
AnnouncementREG - Pennon Group PLC - Publication of Annual Report and Accounts 2025
AnnouncementREG - Pennon Group PLC - Director/PDMR Shareholding
Announcement